Q # 01: Following are the data related to Silver Corporation. 2008 2009 2010 2011 2012 2013 Sales 36000 36570 41213 44646 52345 65434 Net Income 24400 25465 26565 28765 29876 31245 Total Shareholder 15190 15452 16543 16897 17654 18765 Equity Outstanding 2350 2400 2450 2500 2600 2700 Shares Total Liabilities 9700 10,000 11,000 11,760 12,230 12,900 Long Term 7000 8100 9300 9600 10,120 10230 Liabilities Cost of equity of company is 11 %. The growth rate for residual income after 2013 will be constant forever 5 %. You are required to determine the value of stock using Residual Income Model as off 2009. Q # 02: Explain the hedging Maturity approach with respect to working capital management in detail? (Hint: what is it, what are advantages and what disadvantages company will face if not used)